Rumors persist that Apple is interested in investing in the development of the Apple Car. Recent speculations suggest that Project Titan, which has never been officially confirmed, might be terminated. According to industry sources, Apple's current main contract assembler, Hon Hai Technology Group (Foxconn), is not expected to be greatly affected despite its increasing emphasis on electric vehicles (EVs).
Apple reportedly developed Project Titan between 2014 and 2015 in response to the self-driving trend. Although Apple has never acknowledged or denied this, the public has long held high hopes for the rumored Apple Car.
Even though Apple has only publicly stated that it is involved in EV R&D and specifically focusing on autonomous driving, the market's interest in Apple's car-making activities remains high, with much speculation about Project Titan.
The most recent development is that Apple has opted to discontinue its automobile manufacturing strategy and reallocate the corresponding resources to a division dedicated to artificial intelligence. Although Apple has not officially confirmed the rumors, statements made on social media by notable industry heavyweights such as Elon Musk, Lei Jun of Xiaomi, Li Xiang of Li Auto, He Xiaopeng of Xpeng, and others have given the message credibility.
Most relevant industry players are astonished, but not surprised, by Apple's decision to halt automotive production, even though it is still in the rumor stage. The primary challenge is that constructing a mass-produced car from the ground up, even an electric car, requires substantial money and resources. Recouping expenses and profits is considerably more challenging in today's electric car business.
According to supply chain sources, the automotive manufacturing process is quite complex. As a result, not even Apple has been able to create a product worthy of internal recognition and acceptance in the last ten years. Apple's abandonment of every initiative endangers the market and negatively reflects the electric car sector.
However, the decision to terminate related plans provides Foxconn, Apple's primary OEM, with additional opportunities and possibilities, the sources noted.
While it was previously reported that Apple had contacted Foxconn, Hyundai, Chery, and other companies about manufacturing, this was ultimately unsuccessful. It is apparent that at the time, Hyundai and Chery's production technologies did not meet Apple's requirements. Foxconn faced a significant hurdle in convincing customers due to its lack of experience manufacturing autos.
However, in recent years, Foxconn has considerably invested in developing, designing, manufacturing, and producing EVs. Foxconn aims to provide a high-quality and affordable platform for EV brands, starting with the Model T and progressing to mass production of the Model C and Model B by the fourth quarter of 2024.
Apple may have abandoned Project Titan for now, but it does not imply it will lose interest in automobiles in the future, sources said. This gives Foxconn more time to enhance its production and manufacturing technology. Perhaps in a few years, if technology and market conditions allow, Apple can resume plans for electric cars. Sources indicate that Foxconn will be confident in competing with other companies.
On the other hand, sources believe Apple's emphasis on AI would create opportunities for Foxconn. AI ought to boost the competitiveness of Apple's existing products. As one of the key assemblers for iPhones, Foxconn should be able to reap obvious benefits.
Article translated by Jessie Shen
